Third party car insurance provides coverage for damage to a third party property or person due to the policyholder’s vehicle. Third party insurance covers cost only for third party liabilities and not for the damage done to your
own vehicle. The coverage for third party liabilities can be third party vehicle/property damages, disability and death. As per the Motor Vehicles Act of 1988, third party car insurance is a mandatory cover, and driving without it
can land you up paying hefty fines to RTO.
A car insurance policy consists of three parties - the First Party or the car owner who purchases the car insurance policy. Second Party or the motor insurance company that provides financial support in exchange for a car insurance premium. Third Party or any other person who may get injured or whose property may get damaged by the policyholder's car in an accident. Hence, third
party car insurance covers third party liabilities caused by the policyholder's car. With a third party car insurance policy, you can also buy a personal accident cover worth ₹15 lakhs.
How does Third Party Car Insurance Work?
When you buy a new car or if you have an existing car, you are required to buy the third party insurance cover too. Once you buy the cover, it covers your financial liabilities against third parties. If there is an accident wherein a third party,
i.e., an individual other than you, suffer any financial damage, the third party cover would compensate the individual for the loss.
The coverage works in the following scenarios–
• An individual is physically injured due to the car
• An injured dies in an accident involving your car
• Your car damages a third party property
In either of these cases, you would have to inform the insurance company of the claim. The insurance company would handle your financial liability and compensate the third party for the financial loss that they might have suffered.
Your safety is our priority; we cover your treatment charges in case of injuries due to a car accident.
Third Party Liability
Caused injury to another person? We cover the medical needs for injuries sustained by a third party person.
Third Party Property Damage
Collided with a third party vehicle or property? We cover up to Rs 7.5 lakhs for third party property damages.
Contractual Liabilities
Entered into a contract related to your car? Unfortunately, we do not cover any contractual liabilities.
War & Nuclear Risks
Wars cause extensive destruction. However, any damage caused to a third party person or property because of war & nuclear risks remains uncovered.
Limitations as to use
Love car racing? Sorry to inform you, but we do not cover claims if your car has been involved in speed testing, organized racing etc.
Features & Benefits of Third Party Car Insurance
Key Features
Benefits
Premium
Starts @ ₹ 2094*
Buying Process
Buy Third party insurance online within minutes with HDFC Ergo
Claim Settlement
Experience quick and easy claim settlement process with dedicated team.
Personal Accident Cover
Up to ₹15 lakhs~*
Not having a Third Party Insurance policy can leave you vulnerable to risks in turn causing huge financial losses!
Comprehensive vs Third party Car Insurance Cover
Damages/ Lossed Caused
Third Party Insurance
Comprehensive Car Insurance
Damages to vehicle due to accidents
Excluded
Included
Losses due theft of car
Excluded
Included
Losses due natural disaster
Excluded
Included
Damages to third party vehicle and property
Included
Included
Death of a third party due to accident
Included
Included
Personal accident cover(if opted for)
Included
Included
Third Party Insurance Premium Rate
IRDAI determines the third party car insurance premium. The premium rate differs as per the car’s engine cubic capacity.
Engine Capacity
TP Premium for Renewal of existing vehicle (Annual)*
TP Premium for New Vehicle(3 Years Policy)
Less than 1,000cc
Rs. 2,094
Rs. 6,521
Above 1,000cc but less than 1,500cc
Rs. 3,416
Rs. 10,640
More than 1,500cc
Rs. 7,897
Rs. 24,596
Why choose HDFC ERGO for Third Party Car Insurance?
Here are some reasons to choose HDFC ERGO third party car insurance policy ;
• Affordable premiums starting at Rs.2094
• Quick online purchases
• Quick and easy claim settlements with the help of a dedicated team
• 6700+ cashless garages pan India
Who Should Buy Third Party Car Insurance?
Every car owner must have a third party car insurance policy as per the Motor Vehicles Act of 1988. However, it only covers third party liabilities and does not provide coverage for its own damage. Let us see for whom third party car insurance
is ideal:
• For vehicle owners whose vehicles are always parked and hardly move out.
• Third-party car insurance is ideal for very old cars, including vintage cars.
How to Buy Third Party Car Insurance Online?
The below steps will guide you through buying third party car insurance online.
Enter your car registration number and click on ‘Get Your Quote’. Or proceed by clicking on 'Proceed Without Car Number'.
Step 3
Enter your details (Name, Mobile Number and Email Id). All the quotes in your category will be visible on your screen.
Step 4
Select the policy that suits your needs and price point.
Advantages and disadvantages of Third Party Car Insurance
Advantages
Disadvantages
It is affordable.
It costs less than a comprehensive car insurance policy but
offers coverage for only third party damages.
Financially protect the policyholder in case of death or disability
of the third party and in case of damage to
the third party property or vehicle.
In the event of an accident, third party cover would not protect you
from the damages that occurred to your vehicle or to yourself.
There won’t be any legal action taken against you,
if you drive vehicle with third party car insurance.
If your car gets stolen or burnt due to a fire, you will not get any
coverage with this cover.
Factors That Affect Your Third Party Car Insurance Premium
Your third party car insurance premium is fixed by the Insurance Regulatory and Development Authority of India (IRDAI). However, it depends on the following factors –
1
The engine capacity of your car
The premium of a 3rd party insurance coverage depends on your car's engine capacity. It starts at Rs.2094 if your car's engine capacity is up to 1000cc. For higher engine capacities, the premium increases. So, the higher the car's engine
capacity, the higher the premium you have to pay.
2
Tenure of the policy
If you buy a brand new car, you have to buy third party insurance cover for a mandatory period of three years. This long-term coverage means higher premiums since you have to pay the premium for the next three years in one lump sum.
3
IRDAI reviews
The IRDAI makes annual reviews of the third party premium. Following every review, the premium might increase or decrease. So, your premium would depend on the latest revised premiums affixed by the IRDAI.
Calculate Third Party Car Insurance Premium Online In Just One Click!
HDFC ERGO offers an online premium calculator that helps you calculate the premium for your third party car insurance policy in just one click. So, open the calculator, provide your car's engine capacity and calculate the third party
car insurance premium you have to pay. It is as simple as that!
I got a quick response from the HDFC ERGO Team for roadside safety assistance for a flat tyre. I appreciate everyone's help with the quick turnaround on this.
CHANDRASEKAR RAVI PRASAD
PRIVATE CAR PACKAGE POLICY BUNDLED
1 Nov 2023
TAMIL NADU
Your customer executive was extraordinary – and knowledgeable. I appreciate the patience and polite nature of your customer care executive. I have retired recently after working 50 years in marketing, including 20
years as CEO of a Swiss company in Dubai. I can say that I have the best customer service experience with HDFC ERGO. God Bless HDFC ERGO!
KRISHNA MOHAN NORI
PRIVATE CAR LIABILITY ONLY
02 August 2023
TELANGANA
Your services are amazing, and your team is excellent in answering and guiding and us. I am satisfied with your services and expecting the same in future also. Thank you.
Akash Sharma
Private Car Insurance Policy
7th June 2023
Haryana
Your team has done an excellent job in settling my claim on time. I really appreciate your claim team's effort.
Rumit Patel
Third Party Insurance Policy
23 April 2023
Ahmedabad
Buying the car insurance policy from HDFC ERGO was the best experience I had till now for getting an insurance policy for my vehicle. I am very impressed by the customer care service team of HDFC ERGO. Your customer care
executives are very cooperative and give a clear understanding of the policy. Apart from that, they guide you from start to end. Therefore, I am happy to choose HDFC ERGO to buy my vehicle's car insurance policy.
Gautam
Private Car Insurance Policy
27 March 2023
Bengaluru
The way your customer care executive managed the call was quite impressive. Keep up the good work!
Nisshant Bansal
Private Car Insurance Policy
25 March 2023
GAUTAM BUDDHA NAGAR, Delhi
Interacting with your customer care executive was an excellent experience. They solved my issues in one single call. If I need any other insurance, I will return to HDFC ERGO.
ARNAB NAG
Private Car Insurance Policy
2 Feb 2023
WEST BENGAL
HDFC ERGO team is good in communication and also quick in taking action.
C B GANGADHARA
Private Car Insurance Policy
6 Feb 2023
KARNATAKA
I want to thank the HDFC ERGO customer care team, who are very cooperative in solving the query. I am very interested in renewing the car insurance policy in future also with HDFC ERGO. Once again, thanks for your valuable
support.
GAUTAM HUKKU
Private Car Insurance Policy
13 Sep 2022
Tamil Nadu
It was a great experience. I could have got cheated by the local service provider but your confirmation of the exact amount credited to the service center helped me debate and get the full credit of the amount approved.
I paid the balance and got my car picked up. A big thank you for transparency and promptness
Prateek Benjamin
Private Car Insurance Policy
18 May 2022
Delhi
I am much impressed by your call centre executives' excellent talk and gracious behaviour. The way they attended my call, guided me on the phone and helped me get my vehicle insured deserves appreciation and gratitude.
Vipin rai
Private Car Insurance Policy
16 May 2022
Gurgaon
Your team has cleared my doubts and helped to select the best package for my vehicle. Remarkable job by your call centre team. Keep up the excellent work.
Rajani Bala Karri
Private Car Insurance Policy
30 April 2022
Hyderabad
HDFC ERGO customer care team gave me reasonable assistance in getting this policy done. Your team has made lots of effort to explain the details of the add-ons, which helped to get them added to the policy. Appreciate the
support in ensuring that the variant is added to the portal.
Read the Latest Third Party Car Insurance Blogs
Why Is Comprehensive Car Insurance More Expensive Than Third-Party Insurance?
As per the new rule, purchasing a three-year bundled third party car insurance is mandatory if a person buys a new vehicle. However, existing car owners can continue to buy third party insurance cover having a validity
of only one year.
The person (insured) who purchase the insurance policy is called the first party. The insurance company that provides insurance is called a second party and the property. Any person/vehicle that has been damaged while plying
car on the road is called third party insurance.
The primary purpose of third party insurance is to cover the insured from any liability arising out of acceded to person, vehicle or property. This also includes the injury and death of the third party. Moreover, the premium
price of this type of insurance is comparatively less and is hence mandatory for all vehicle owners to have.
No, just third party insurance coverage is not enough. As per Motor Vehicles Act, 1988, along with third party insurance, personal accident cover is also mandatory. Therefore, HDFC ERGO's third party insurance policy includes
personal accident cover for the owner or driver’s injury or unfortunate death.
Some of the benefits of having third party car insurance policies are pointed out below: ● Legal compliance: Helps you comply with the legal requirement. ● Easy to buy: You can buy a policy within 3 minutes from
our website/app. ● Cost-effective: The premium of third party insurance is low. ● Liability coverage: You need not worry about any liability against third party damage.
No, you cannot skip buying third party car insurance coverage. It is a mandatory requirement as per Motor Vehicles Act, 1988. Even in a comprehensive insurance policy, third party liability is included.
After the accident, you need to intimate the insurance company within 36-48 hours. The inspection and settlement procedure begins right after you bring it to the notice of the insurance company. At HDFC ERGO, we offer you
100% paperless claim processing.
Every movable asset goes through daily wear-tear that causes its value to depreciate over time. Zero depreciation cover is an add-on that insures against such depreciation of your four wheeler.
Since a third
party insurance policy does not accommodate add-ons, you cannot get zero depreciation cover under your third party car insurance.
The insurance company bears the major claim except for a small portion of the claim that the policyholder has to bear. This amount is called a deductible. But in the case of third party car insurance, there is no deductible
involved since damage to the customer's four wheeler is not included in the policy.
Yes, you can buy third party insurance online. HDFC ERGO offers you zero documentation, instant third party car insurance policy. Visit our website to buy one in less than 3 minutes.
No, you cannot include add-ons in a third party insurance policy. To include add-ons in your policy, you can opt for a comprehensive car insurance policy for wide coverage.
Yes, a third party car insurance will cover your losses against third party liability even if someone else was driving your car at the time of the accident, provided the following conditions are fulfilled: ● The driver
must be above legal age permitted to drive ● The driver holds a valid driving license at the time of the accident ● The driver was not under the influence of alcohol or drugs.